Araya Credit is a service designed for leverage purposes. It consists of two main value propositions:
- 1.A low-risk return for single asset liquidity providers
- 2.High leverage for active traders, entities or other protocols that wish to borrow assets
Pain points of traditional lending protocols and leverage services:
- Most lending requires high collateralization, which limits the efficiency of funding, such as Aave or other lending protocols in the Ethereum ecosystem, which require over-collateralization.
- The traditional leverage function, whether in centralized or decentralized service providers, basically allows users to establish long and short leveraged positions after depositing a certain amount of margin as collateral. However, this only amplifies the user's exposure to risky assets, and the funds in the user's leveraged position cannot and will not be further utilized.
Araya Credit was created to solve these problems. Araya Credit allows anyone to adopt Defi's native leverage services and then earn leverage gains on a variety of protocols. Araya will gradually expand protocol whitelist to increase the scope of protocols to which users can apply Credit Card.